Is European Wax Center, Inc. overvalued or undervalued?

As of 17 October 2025, the valuation grade for European Wax Center, Inc. has moved from attractive to fair, indicating a shift in its perceived value. Based on the current metrics, the company appears to be overvalued. The P/E ratio stands at 24, which is significantly higher than the peer average of 16.93 for companies like Agiliti, Inc. and Sonder Holdings, Inc. Additionally, the EV to EBITDA ratio of 9.45 is also above the peer average of 7.91, further suggesting overvaluation.
In comparison to its peers, European Wax Center, Inc. has a Price to Book Value of 4.57 and a ROE of 19.43%, which are relatively strong but do not compensate for the high valuation ratios. The company's stock has underperformed significantly against the S&P 500, with a year-to-date return of -48.58% compared to the S&P's 13.30%, reinforcing the notion that it may be overvalued at its current price of 3.43.